Deal to avert milk price hike may not come up for vote

Milk prices could spike to $6 to $8 a gallon in January if lawmakers fail to reach a 'fiscal cliff' deal and renew a Farm Bill that's been in place since 2008 and sets the price at which the government buys milk. / Photo by Scott Olson/Getty Images

Agriculture committee leaders from both chambers and parties today reached a one-year farm bill extension deal, with the hope of keeping milk prices from skyrocketing to $8 a gallon in January. But with legislation still hanging in the balance for the so-called "fiscal cliff," Republican leadership indicated to CBS News it may not see floor time for a vote before year's end.

After months of agriculture committee leaders cautioning against a temporary farm bill, the agreement comes as a last-ditch effort to avoid what would be $6 to $8-a-gallon milk if Congress doesn't pass some type of measure to replace the farm law that expired nearly three months ago. Technically, the United States has been operating under a 1949 "permanent" law since Oct. 1, but its drastic and antiquated effects would begin to take effect in January.

• Milk, grocery prices on the rise if Congress ignores farm bill
• As "cliff" clock ticks, lawmakers say they still need more time

House Agriculture Committee Chairman Frank Lucas, R-Okla., just this month conceded that a one-year extension may be the most realistic scenario for the "dairy cliff" as lawmakers hurtle toward a year's end tunnel-focused on the more highly publicized "fiscal cliff". In a statement today, Lucas acknowledged, "Clearly, it is no longer possible to enact a five-year farm bill in this Congress. Given this reality, the responsible thing to do - and the course of action I have long encouraged if a five-year bill was not possible - is to extend the 2008 legislation for one year. This provides certainty to our producers and critical disaster assistance to those affected by record drought conditions.

"The one year extension," he continued, "...is not perfect - no compromise ever is - but it is my sincere hope that it will pass the House and Senate and be signed by the President by January 1."

Meanwhile, until today, lawmakers in the Senate Agriculture Committee had remained steadfastly resolute that extending the 2008 law shouldn't be an option. Between having to scramble for additional funding for already-expired programs and extending payment for disaster assistance, which was significant this year following a prolonged Midwest drought, they argued, any temporary measure would cost more than a full five-year bill, without offering any spending cuts.

Senate Ag Committee Chairwoman Debbie Stabenow, D-Mich., pointed out that unlike the House, the Senate had already passed its version of a farm bill, over the summer. But after hashing out the best- and worst-case scenarios for some form of farm legislation to get through by the end of the year, she conceded: "The lack of action by the House Republican leadership has put us in a situation where we risk serious damage to our economy unless we pass a temporary extension.

"If a new Farm Bill is not passed in the next few days," she continued, "Agriculture Committee leaders in both chambers and both parties have developed a responsible short-term Farm Bill extension that not only stops milk prices from spiking, but also prevents eventual damage to our entire agriculture economy. ...If a new Farm Bill doesn't pass this Congress we'll soon hold another mark-up and just keep working until one is enacted next year."

Lucas told Politico last month that House Speaker John Boehner, R-Ohio, had suggested to him that a farm bill was being strongly considered as part of the deficit reductions necessary to avert the "fiscal cliff," a series of tax hikes and spending cuts that could throw the U.S. economy into recession. Still, after weeks of offering the Agriculture committees little to no guidance as to the likelihood of that outcome, Republican leadership told CBS News this afternoon that it had not approved even the short-term proposal, and will not necessarily bring it up for a vote.

[Bcjammerx]

"We waste all your tax money on stupid things...so to fix this we're going to double the price of milk"

HOW do these people get votes???

[linda_mayberry]

Our government hasn't functioned for 4 years--no budgets, congress by-passed with executive orders, the deficit sky-rocketing, entitlements going through the roof, and the media covering up how bad our economy really is. We are swirling down the drain. The emperor is about to lose his clothes.

[Ulgnud]

Price goes up and people will stop buying. Then one of two thing will happen. The price will go back down to what the free market will bear, or it will rot on the shelves. The US Constitution does not authorize government price meddling in the free market. Too bad we can't do the same for the ripoff gas and diesel prices as well.

[jubilee9]

Get a huge boat. Get a few billion dollar drilling rig. Do research for years and find a place to drill for oil. Find oil. Pump it into a big boat. Ship it across the world. Pump it out. Refine it and make gasoline. Ship it across the world to dispense it. Pay all the people to do all this, plus the gas station owner. Price - $3 to $4 a gallon. Now milk a cow, pasturize the milk, put it in a jug and send it to market. Now were talking $8 a gallon. You figure it out. Just who is screwing who?
Things are so far out of sync anymore that it's hard to keep your perspective in check. Let the market set itself. If your dumb enough to pay $8 for a gallon of milk, then go for it. Water is cheap and better for you, but if your one of those who just want, want, want, and will pay any price because you want it, then you are the bigger problem for this country.

[Dairyfarmer11]

How about buy the hundreds of thousands of dollar buildings and land to house those animals. Thousans and thousands to feed them 365 days a year plus paying the employees to feed and milk the 365 days a year. Then you truck it to the processing facilities the bottle it.then ship it then refrigerate it in the store. It's people like you who don't know anything about something and assume you do. The farmers have been taking it up the rear end for centuries trying to keep food on the table cheap for fellow Americans and this is how you repay us by insulting us. I hope everyone switches to soy milk and almond milk and watch it quadruple in the stores. It's supply and demand that's how it works can't figure that out?also try to bake a cake or macaroni and cheese. Try swallowing that stale bread because you ripped on the farmers with no butter. Guess you could soak it in your glass of water bet will taste great. Hope you like your coffee black no cream oh you can water it down I guess.

[2smorning]

Chinese debt,higher taxes,creating dependency,tinkering with free market Capitalism, destroying the true American dream. So sad it is to see.

[magnumdr]

I can gaurentee you that if milk prices soar up, there will be a lot of sour milk that sits on the shelves!

[BUDDYofPA]

Yup thanx to the Republicans, Mothers will now have to brestfeed their children until they are 6 or 7 years old.

[tenbender]

great idea !

[Ulgnud]

You don't go to the store and do much shopping do you. There is something called Formula. Mothers have been using that for years. Republicans did not start subsidies for the dairy industry. Not to mention there is no authority granted the US Government in the US Constitution to dabble in the free market to manipulate prices.

[CBSName]

If I understand the article, starting tomorrow we won't even have to spill the milk before crying over it.

[jechaucer]

I wouldn't worry too much. I'm sure China or India will figure out how to get us milk cheaper.

[Dairyfarmer11]

And you people wounded why we are in a recession. Do you even have any idea what there regulations are over there. Not only is it half of what ours is, they have also put there same milk in baby formula and killed hundreds of children, so while you are drinking milk that is no better than rat poison my children will be drinking American made milk that follows all the FDA regulations and has a low somatic cell count and no additives. We as dairy farmers aren't wanting milk to sky rocket, we just don't want to be paying for all these worthless wick and welfare people to be drinking our product for free when we can't even afford to pay ourselves or our bills. Now is that too much to ask

[1pheasant1]

I didn't see the word "entitlement" in the article.